The Federal Trade Commission (FTC) is reminding student loan borrowers that they have until October 31 to submit an application for the Public Service Loan Forgiveness (PSLF) Limited Waiver. The waiver has already proven its worth to thousands of student loan borrowers who have used it to get closer to total loan forgiveness.
The FTC says there are two groups that the waiver benefits the most: (1) people who have Federal Direct Loans or can consolidate other types of federal student loans into a Direct Loan by October 31; and (2) those who have a work history with qualifying public service employers.
Until that October 31 deadline, securing a waiver gives borrowers credit for repayment periods that previously wouldn’t have counted. Those would include the following times:
When a borrower didn’t make a payment
When a borrower didn’t make a payment on time
When a borrower didn't pay the full amount due
When a borrower wasn't on a qualifying repayment plan
The steps to take advantage of the waiver
Here’s the short version of how consumers can take advantage of the waiver:
Submit the PSLF form. Consumers can use the PSLF Help Tool to verify the current and past employment that they want credit for and submit the PSLF form.
Confirm (or consolidate into) Direct Loans. The waiver only applies to Direct Loans, so borrowers need to consolidate their existing federal loans by October 31, 2022. The process is free through studentaid.gov. If someone is unsure about what types of loans they have, all they have to do is take a look at their FSA Aid Summary.
If there are questions that the instructions for those steps don’t answer, borrowers can go to StudentAid.gov's comprehensive list of FAQs to help find the answers they’re looking for.